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Flaherty: 'modest' CPP expansion possible if economy grows

The Canadian Press
Published Monday, December 17, 2012 3:55PM EST
Last Updated Monday, December 17, 2012 5:12PM EST

OTTAWA -- There still isn't enough support from the provinces to expand the Canada Pension Plan, but Finance Minister Jim Flaherty says there's hope of "a way forward" provided the economy continues to grow.

Flaherty, who spent the day meeting with his provincial counterparts, says they agreed to establish a set of economic "triggers" based on GDP and job growth that would allow the pension plan to expand without endangering the economy.

"There's no consensus on CPP expansion at this time," Flaherty said.

"The ministers did agree that we would task our officials with working on definitions of 'modest increase' and 'economic triggers' that we would then discuss at our next meeting in June."

Ottawa and provinces will work for the next six months to map out a strategy for moving ahead, Flaherty told a wrap-up news conference Monday.

He says ministers want to establish "triggers" on GDP growth and employment that would permit expanding the pension program without risking damage to the economy.

Ontario Finance Minister Dwight Duncan, one of the most vocal proponents of urgent pension reform, says he's encouraged by the meeting, even if the pace of discussions is a bit slow for his liking.

"There isn't consensus for moving forward now, but there's certainly an overwhelming majority of the provinces that do want to move forward," Duncan said.